One Rank One Pension (OROP) – Satyam Ev jayate
			
			
			
			(Will Truth Prevail?)
			
			
			Some one who has the ears, eyes and trust, mark the word, trust, 
			some where in the byzantine maze of South and North Blocks, must be 
			laughing about the briefs prepared for the Raksha Mantri (RM) and 
			Prime Minister (Pradhan Mantri, Pradhan Sevak and, of course, 
			Pradhan Santri)  on OROP and recalling Thomas A Edison’s words, “I 
			have not failed. I've just found 10,000 ways that won't work.” How 
			else can the learned RM read out on OROP something prepared by 
			‘someone’ on 5th and, more seriously, the notes for the 
			PM’s ex-tempore public address on 6th September 2015 
			contain factual errors (gaffe for us lesser Indians)?
			
			
			OROP – The Origin 
			
			
			          The first fact those ‘some one’ did not disclose to the RM 
			& also the PM is that the OROP issue first came to the conscious 
			knowledge of the Public, the Governments, and Ex-Servicemen (ESM) 
			not 68 years ago (in 1947), not 42 years ago (in 1973), but actually 
			35 years ago (in 1980-81) when the Estimates Committee on 
			Resettlement of ESM noticed the disparity in pensions of pensioners 
			of Armed Forces retiring in different Central Pay Commission (CPC) 
			regimes. 
			
			
			Then a torturous process of righting the wrong started.
			
			
			          In 1984, Shri K P Singh Deo, the MoS, MoD (Congress 
			Government), chaired a High Level Empowered Committee, which 
			recommended that the 4th CPC should consider the matter 
			in line with the principle of pensions of Judges of the High Courts 
			and the Supreme Court. The 4th CPC did not make any 
			observation or recommendation.       
			
			
			          It was followed in 1991 when a High Level Empowered 
			Committee headed by then RM (Congress Govt) Shri Sharad Pawar did 
			not recommend OROP but recommended a one time increase for ORs, JCOs, 
			Honorary Commissioned Officers, and Officers below the rank of 
			Colonels and equivalents.
			
			
			          In 1994-97, the 5th CPC considered OROP but did 
			not recommend it but the CPC did recommend full parity for personnel 
			who had retired before 1986 and notional parity for those who 
			retired after 1986.
			
			
			          It was followed by, in 2003 when the first BJP Govt 
			constituted an Inter-Ministerial Committee, serviced by Deptt of 
			Pensions and Pensioners Welfare (DP & PW). The Committee submitted 
			its report in Sep 2004 (UPA-I Govt) but the Ministry of Finance 
			rejected (déjà vu?) it stating that it was not in consonance with 
			the 5th CPC recommendations and termed it as “a side door 
			entry” for OROP.
			
			
			          From 2005 to 2011, OROP was rejected by or not decided 
			upon by different Ministries and Committees of Secretaries till on 
			19th December 2011, the Bhagat Singh Koshiyari Committee 
			recommended OROP and even defined OROP.      
			
			
			          After the Koshiyari Committee came the Prime Minister 
			constituted Cabinet Secretary  Committee in July 2012, which 
			submitted its report in August 2012 that OROP is not viable, 
			financially, administratively or legally and recommended passing the 
			OROP baby and the hot water to the 7th Central Pay 
			Commission to consider it “holistically.”
			
			
			          However, perhaps driven by the oratory of the PM-Candidate 
			and the frenzy that ensued, the UPA Govt declared its intent of 
			implemented OROP in the Interim Budget 2014-15.     
			
			
			Assessment by the Koshiyari Committee 
			
			
			          Let us now walk across the figures that ubiquitous ‘some 
			one’ supplied to the Prime Minister, which he mentioned in his 
			speech on 6th September 2015.      
			
			
			The estimated financial impact of implementing OROP was estimated by 
			the Koshiyari Committee was Rs 1300 crore if implemented in 2011-12 
			(Para 11 of the Report) and not Rs 300 crore. The Koshiyari 
			Committee recommended Rs 1300 crore in 2011-12, and the breakdown as 
			Rs 1065 crore for PBOR pensioners and Rs 235 crore for officer 
			pensioners. The Committee also estimated that outlay for OROP would 
			increase at 10% annually , so contrary to what the esteemed FM 
			states, the annual increase is not the figment of greedy 
			imaginations of ESM but a fact recommended by a Parliamentary 
			Committee. 
			
			
			In Para 11.1, the Committee noted and recorded “it is heartening to 
			note that the Govt has ….spent Rs 2200 crore for the purpose of 
			meeting the grievance of defence pensioners. The net result is that 
			while the demand for OROP stands almost met in the case of PBOR, the 
			officers’ category remains much behind the target…” This also 
			substantiates the enhancement/improvement in pensions on 17th 
			January 2013! 
			
			
			A prior reading of the observations by the Committee at Para 11 
			would have been very illuminating for those who prepared the notes 
			for the PM, the RM and, those Cassandras who advance the bogey of 
			others demanding OROP or India facing a problem like Greece. But 
			that Greece bit is for another day.
			
			
			…..Only Rs 500 crore set aside by the UPA
			
			
			The third fact omitted by that ubiquitous ‘some one’ is that 
			speeches and pitch of the ‘candidate for PM’ starting from September 
			2013, might have compelled the UPA Govt to open the OROP box by 
			including it in the Interim Budget statement on the floor of Lok 
			Sabha on 17th February 2014, and setting aside Rs 500 
			crore Interim Budget 2014-15. 
			
			
			Omitted from the notes for the PM was the truth that UPA’s Defence 
			Minister and the Finance Minister (FM) stated that “Rs 500 crore was 
			just a token amount and more would be forthcoming as soon as the 
			amount could be worked out.” 
			
			
			This also was reiterated by then Defence Minister in his letter to 
			Shri Rajeev Chandrasekar vide MoD ID No. 12(1)/2014-D (Pen/Pol) 
			dated 26th February 2014. 
			
			
			            It appears that the Prime Minister was not 
			informed/reminded  by that ‘some one’ that Shri Jaitley, our learned 
			FM in the NDA/BJP Govt, went one better, setting aside an additional 
			Rs 1000 crore for OROP and the reading of the Budget (indiabudget.nic.in/ub2015-16/eb/sbe22.pdf).
			May be the Gujarat cadre loaded PMO did not understand the Dilli 
			durbar to ask relevant questions when preparing notes for the PM’s 
			speech of 6th September 2015. 
			
			
			            Or, may be, the revelation would have taken the sheen 
			off UPA bashing!
			
			
			Definition of OROP & Methodology for Implementation
			
			
			Curiously, the ID of 26th February 2014 also contained 
			the definition of OROP. This definition was reproduced verbatim by 
			the RM in his preface to the “Yes, we have given OROP” speech on 5th 
			September 2015. 
			
			
			To take the OROP forward, Shri A K Antony constituted a Joint 
			Working Group (JWG) about two months (24th April 2014 to 
			be exact) after the announcement in the Interim Budget 2014, even 
			beseeching the CGDA to be “considerate.” 
			
			
			The chairperson of the JWG was then CGDA, later promoted to 
			Secretary & Financial Adviser in the MoD. Members of the JWG were 
			from the MoD’s Deptt of Ex-Servicemen Welfare, Defence/Finance, and 
			representatives from Service HQ (Chairmen of the Army, Navy and Air 
			Force Pay Commission Cells and a few officers). But there was no 
			representation from ESM organisations, though they could be 
			consulted if Service HQ so decided, as stated in the ibid ID. 
			
			
			
			The first meeting of the JWG was convened on 2nd May 2014 
			in the office of the CGDA, recorded by the O/o CGDA that “As 
			future enhancements have to be automatically passed on to the 
			pensioners, Services proposal for incremental increase in pension on 
			1st July every year shall be considered.” 
			
			
			Chairman of Pay & Remuneration Committee (PARC) and also Chairman, 
			Naval Pay Commission cell, being the senior-most from the Services 
			at that meeting, scored out, repeat scored out the words 
			incremental increase in pension on 1st July every year, 
			shall” and substituted with “annual revision of OROP tables 
			should be considered.”     
			
			
			In his Action Taken report (on the Budget of 2014-15) and in the 
			Budget speech of 28th February 2015, Shri Jaitley 
			reported having held a meeting with the Defence Secretary, Secretary 
			(ESW), Secretary (Defence/Finance), and CGDA on the implementation 
			of OROP on 26th August 2014. He added, “The modalities 
			are under consideration” (source: 
			
			
			
			indiabudget.nic.in). 
			Curiously again, neither the Services HQ nor the ESM were part of 
			the confabulations. They could have contributed facts and figures 
			that now place the Government in a different light than “I love the 
			Army men, so….” oratory.    
			
			
			A dispassionate but intelligent perusal of calculations by Service 
			HQ would have shown that up to the rank of Major (and equivalents) 
			that are in service will have lower pay in April 2014 than, say, 
			April 2007. Similarly, in higher ranks there is no guarantee that a 
			Colonel with 28 years service in Apr 2014 will draw a lower pay and 
			pension than a Colonel in the 28th year completed in Apr 
			2015 or Apr 2016, simply due to the fact of higher fixation to the 
			2014 retiree in January 2006.
			
			
			  Why the Annual Revision of OROP tables
			
			
			          A perusal of the Koshiyari Committee Report brings out 
			some aspects that will give a more rounded, and less strident, 
			demand and rejection of the Annual or even a Bi-Annual Revision.
			
			
			At Para 6.4 of the Report, the Army’s representative agrees that a 5 
			yearly review is agreeable. At Para 6.5 of the Report the Air 
			Force’s representative concurs with this 5 yearly review. At Para 
			6.6 of the Report, the Navy’s representative is silent.
			
			
			At Para 7 of the Report one will see a more comprehensive statement 
			from the Deptt of Expenditure (MoF).
			
			
			The DoE places the initial estimate in 2011-12 at Rs 1300 crore and 
			projects a 10% annual increase to Rs 1430 crore in 2012-13, Rs 1573 
			crore in 2013-14, Rs 1730 crore in 2014-15, Rs 1903 crore in 2015-16 
			and a 25% increase to Rs 2379 crore in 2016-17 due to the 7th 
			Pay Commission’s recommendations.
			
			
			At Para 8 the DP & PW  projects the demands from others but is 
			silent on the estimate while the Cabinet Secretariat projects an 
			amount of Rs 8000 crore to Rs 9000 crore.
			
			
			In fact most cells in the OROP tables in the Draft Government Letter 
			(DGL) prepared by Service HQ in April 2014 would not have changed 
			every year except for cases like the following: -
			
			
			Firstly, Col/Nb Sub/Hav ‘A’, with 30 years service, whose birth date 
			is 15 June will retire on 30th June 2015 and be denied an 
			increment of 3% which falls due on 1st July every year. 
			Col/Nb Sub/Hav ‘B’, also with 30 years service, but whose birth date 
			is 7th July will retire on 31st July 2015 and 
			get an increment of 3% and therefore a higher pension.
			
			
			Shouldn’t Col/Nb Sub/Hav ‘A’ also get the same pension as Col/Nb 
			Sub/Hav ‘B’, both having served for 30 years and retired just a 
			month apart in year 2015? It will not happen to others who might 
			retire after 1st July 2015 because they will be in 
			receipt of the increment.
			
			
			Secondly, on 16th December 2004, the Ajai Vikram Singh 
			Committee recommendations were implemented and time frames for 
			promotions up to the rank of Colonel were reduced drastically. But 
			there were promotees with 18 years of service who were promoted to 
			rank of Major or Lt Col before 15th December 2004. Their 
			pensions will be to be rationalised because an officer with lesser 
			number of years of service cannot, by the Govt’s Fundamental Rules, 
			draw more pay than an officer with higher years of service. This is 
			also the crux of the Apex Court’s judgment in Maj Gen S P S Vains (retd) 
			Vs UoI.
			
			
			Thirdly, a sepoy is paid Rs 7065 as pension if he has service 
			between 20 and 27 years. But a sepoy who serves 27.5 years (a 
			rarity) is paid a pension of Rs 7175. Shouldn’t the pension tables 
			be rationalised so that all with 27 years of service draw the same 
			pension and the next slab should be at 28 years instead of the half 
			year?
			
			
			          What would be the financial effect? Would we have a Greece 
			like situation as some trolls, and even a learned managing editor of 
			a financial periodical state? 
			
			
			The financial effect was calculated to be about Rs 185 crore in the 
			first year and would reduce every subsequent year because all 
			pensioners would reach the top of the pension table in 5 years, if 
			the 7th CPC did not change the methodology!    
			
			
			
			Any one with the Higher Secondary School standard of knowledge of 
			computers would have correctly briefed the Defence Minister (an IIT 
			alumni) and the PM who has dealt with many a budget in his 12 years 
			as CM of Gujarat.
			
			
			And the VRS Issue
			
			
			          This aspect was never discussed openly nor disclosed (for 
			a Govt that maintains transparency as one of its virtues). Any 
			knowledgeable persons amongst 125 crore Indians, let alone the RM, 
			would be chagrined that the Armed Forces do not have VRS i.e a 
			Golden Handshake where a lump sum is given and matter is closed.
			
			
			
			The some one who prepared the brief/notes would have been more 
			anxious that the RM & PM should not be told about nor read the 
			Defence Services Regulations 2008, Army Pensions Rules – 2008, for 
			only then, in an otherwise moment of generosity, the RM let Mr 
			Scrooge prevail by denying OROP to those personnel (about 40% to 
			50%) who have opted out on PR from Service. 
			
			
			Defence Services Regulations, Army Pension Rules, Chapter VII, 
			Section 5 define the types of pensions (pensions on PR are not 
			mentioned) and Section 9 gives the legal status for withholding, 
			suspending or discontinuing pensions. It can only be because, while 
			in service the Serviceman committed an act construed as waging war 
			against the Government of India or of a conspiracy to wage war 
			against the Government of India and punishable under Section 121 of 
			the IPC. 
			
			
			Didn’t the Chiefs or the Defence Secretary, who had places at the 
			high table, know? Or just like on 26th August 2014, the 
			Chiefs were kept in the dark till that dark hour of 3 pm on 05 Sep 
			2015
			
			
			Finally, if the PR personnel are denied OROP, then the Prime 
			Minister would deny OROP to between 40% and 50% of ESM and to many 
			whose wives would be widowed in subsequent years. 
			
			
			By denying OROP to PR personnel, the financial impact, first time 
			and subsequent, will be half of Rs 8300 crore or Rs 10000 crore or 
			Rs 12000 crore.
			
			
			In Conclusion
			
			
			In conclusion the Prime Minister has kept his word to implement OROP. 
			But some one in his Government has found the myriad ways to ensure 
			OROP as defined by the Koshiyari Committee and approved by 
			Parliament in March 2014 and July 2015 will not work.
			
			
			Therefore, it is difficult not to recall the words of Thomas A. 
			Edison, “I have not failed. I've just found 10,000 ways that won't 
			work.” Will those words be carved on the tombstone of this 
			Government’s commitment to OROP? 
			
			
			Satyam Ev Jayate?